The evolutionary model presented in this paper depicts an industrial sector with a varying degree
of economic roundaboutness, i.e. vertical division of labour between producers and users of
different types of intermediate products that are ultimately used for the production of a single final
product. To include this vertical aspect of industrial dynamics, the model adds the concept of
production trees to the evolutionary models of Schumpeterian competition. The specification of
this concept suggests the use of the notions of graph theory and the related algorithms of
computer science in the treatment of industrial novelty, including structural innovations. Although
the model is developed within the Nelson and Winter tradition, the introduction of the 'Austrian'
issue of roundaboutness implies a major extension of the research agenda, including production-
structure innovations, the emergence and functioning of markets for intermediate products,
ways of coping with the instability of upstream markets, the spread of the effects of an upstream
innovation, and the measurement of the degree of roundaboutness and of overall productivity. The
model reflects a Schumpeterian version of the Böhm-Bawerkian vision of the emergence of
increased long-term roundaboutness of production. The Schumpeterian approach implies an
innovation- and entrepreneur-driven process of vertical disintegration and reintegration.

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The Bank for International Settlements (BIS) is the premiere international institution for the regulation of the world’s financial system. Originally established to handle German reparations payments, the BIS’s contemporary role is to provide global standards for prudential bank regulation and to facilitate information sharing among a range of state and non-state actors. While privately incorporated and underwritten by its member central banks, the BIS is fundamentally a service provider with quasi-non-governmental organization, ‘quango’, status. This paper traces the evolution of this unique international quango, stressing the development of the Basle Accords of 1988 and 2004, and how the BIS uses informal and formal networks of elite policymakers to create a normative consensus that compensates for its lack of formal enforcement mechanisms.

The ERP industry has undergone dramatic changes over the past decades due to changing market
demands, thereby creating new challenges and opportunities, which have to be managed by ERP
vendors. This paper inquires into the necessary evolution of business models in a technology-intensive
industry (e.g., develop new offerings, engage in partnerships, and the utilize new sales channels). This
paper draws from strategy process perspective to develop an evolutionary business model (EBM)
framework that explains the components and processes involved. The framework is then applied to a
longitudinal case study of SAP to explain how its success in a technology-intensive industry hinges on
its ability to reconfigure its business model. The paper contributes to the extant literature on business
models in two ways: first, by identifying and explaining the need for an evolutionary perspective; and
second, by adopting different value configurations to reflect the convergence of customers, suppliers
and vendors.

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Over the last three decades, business news has become an area of growth in most industrialized countries. This report, which is part of a Nordic research project on the rise of the business press, describes how the field of business news production has evolved in Denmark. Based on a large quantitative analysis of news content in two Danish dailies, "Berlingske Tidende" and "Børsen", the report first shows how a market for business news has developed, and then shows how the volume of business news has expanded and the content features and formats of business news have changed with the development of the field. The analysis suggests that with the expansion of business news a dual process of professionalization and popularization of business journalism has occurred.

The paper at hand presents an extension and application of Kotzab & Madlbergers (Kotzab &
Madlberger, 2001) original clicks-and-mortar web-scan framework, which is here used to reexamine
the click-and-mortar activities of the top 100 Danish retailers and compare with results
from the identical study last year. The first part of the paper describes the development and
rationale behind the model used, the second part describes the results obtained and describes the
evolution by analysing data from 2001, 2002 and 2003. The empirical results show a shift
toward selling in the internet channel, and a differentiation between the most sophisticated sites:
they focus on either Marketing or Logistics processes!

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How does population dynamics influence outcomes in situations with public good
characteristics? The present paper answers this question by analysing the evolution of costly
cooperation in a multi-group population. Building on insights first developed in modern
biology the idea of viscous population equilibria is introduced (a population is said to be
viscous when a (sub)population of players is spatially or genetically clustered). A simple
model then analyses how the combined effect of viscosity within multiple subgroups and
different levels of between-group segregation influences the evolution of cooperation. The
results suggest that a key issue in the evolution of cooperation is the shifting balance between
the need to protect cooperators and propagation of the tendency to cooperate.

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Studied in the context of medical device activities at the pharmaceutical company Novo Nordisk A/S in the period 1980-2008

Stjernholm Madsen, Arne(Frederiksberg, 2012)

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Abstract:

Increased globalization in business competition makes the ability to innovate and to redefine
strategy crucial to a company. An interesting question however is if a management team can control
innovation and strategic renewal of the company at all; or do such changes emerge, driven by
external events or by bottom-up processes in the organization? The present research project
addresses some of these issues through the overall research question “How does innovation strategy
evolve?”
The research question is examined in a specific empirical context. Since 2001, I have worked as an
internal innovation consultant at Novo Nordisk A/S; a pharmaceutical firm founded in 1923
operating in a well established industry (insulin for diabetes treatment), characterized by intensive
investments in Research and Development. I took advantage of this unique access to the internal life
of an organization and consequently set up my research project as a longitudinal in-depth case study
of the medical device innovation activities at Novo Nordisk A/S covering the period 1980-2008. The
study specifically analyzes the relationship between the classic core product of the firm (insulin) and
complementary products (medical devices, such as insulin ‘pens’), which hold the potential to either
enhance the value of the core product, or to become a distinct business of its own.
Burgelman’s evolutionary theory of strategy making, especially his ‘internal ecology model’
(Burgelman 1991, 2002), has been chosen as the basic theoretical framework for the project. Some
expansions of this framework, however, were needed. First, the present study puts greater emphasis
on analyzing the external environment and its influence on internal strategy processes. Second, the
analysis includes the role of management cognition, especially the notion of the corporate dominant
logic (Prahalad & Bettis, 1986; Bettis & Prahalad, 1995), understood as an enduring top management
worldview or mindset based on reinforcement of experiences from the past.
With regard to results, the present study identifies a more entrepreneurial role of the top
management driven induced strategy process than traditionally described in evolutionary theory. In
this case study, strategic variation and trial-and-error learning is not restricted to the autonomous
initiatives in the ‘internal ecology’; on the contrary, top management cognition creates strategic
visions or hypotheses, which are enacted as experiments in the market, for example in the form of
new product categories. External feedback determines the destiny of these strategic experiments.
Thereby innovation strategy (in case, for medical devices) serves as a strategic laboratory at
corporate level, so to speak.
The device-based strategic experiments face the challenge of escaping the gravity of the dominant
logic, which repeatedly pulls the strategy back towards the well-known success formula, centered on
the drug itself (i.e. the insulin). Thus, the induced strategy process mediates core assets
(pharmaceutical drugs) and complementary assets (medical devices), by swinging the pendulum
between cycles of innovation strategy which define the devices as core or complementary respectively. Hence, the balance between what is defined as core and what is defined as
complementary in the corporate innovation strategy seems to be dynamic and negotiable.
As a consequence of the cycles of strategic experimentation, the corporate induced strategy process
acts as a force of strategic entrepreneurship, seen over extended time.
The implications for research point towards a new paradigm of strategic research in the ‘middle
ground’ between rational choice theory and evolutionary theory, as proposed by Gavetti & Levinthal
(2004). The present research project suggests that a firm’s ability for strategic adaptation depends
both on strategic context determination of autonomous initiatives in the ‘internal ecology’ and on
ability to enact induced strategic experiments with alternating innovation strategies in the market.
This theory of ‘inbound’ and ‘outbound’ strategic search establishes a dynamic understanding of the
corporate induced strategy process. In this understanding, innovation strategies act as hypotheses,
which create strategic dissonance between vision and reality and thereby drive strategic learning.
The implications for management practice are first recognition of how fortunate it has been for
Novo Nordisk to sustain the core business strategy, protected by the dominant logic. This fact relates
to a background where the core market proved to hold immense growth potential, and the industry
was relatively stable compared to for instance the IT industry. On the other hand, Novo Nordisk’s
success is partly due to cycles of strategic experiments with complementary assets for innovation, in
case medical devices. Top management initiated these explorative experiments and the learning was
utilized for expansion of the position within the core business. Hence, one can conclude that a
company should explore and utilize the value of complementary assets, since these are perfect tools
for strategic experimentation without risking the core business.

We extend the ‘centers of excellence’ concept in the multinational corporation (MNC) literature to address the diversity and the multidimensionality of subsidiary competence and link such diversity to the host country environment. Using Rugman and Verbeke’s (1993) diamond network model of competitive advantage of nations, we hypothesize the contingencies under which heterogeneity in host environments influences subsidiary competence configuration. We test our model with data from more than 2,000 subsidiaries in seven Western European countries. Our results provide new insights on the evolution of subsidiary competence and how MNCs can overcome ‘unbalanced’ national diamonds by acquiring complementary capabilities across borders. Keywords: MNC environment, subsidiary competence configuration, industrial clusters, differentiated networks, subsidiary embeddedness.

In this paper, Mie Augier provides a rich description of the intellectual traditions, the signifi-cant people and academic institutions that in some way or another made a difference to Davis Teece’s own intellectual development. In this sense, it is a dynamic account of the emerging career of a distinguished scholar - but not only that. It is also a description of the co-development of three major disciplinary fields; organization theory, economics and strategic management during three decades or so. David Teece has made several important contribu-tions, perhaps most notably to economics (on the theory of the firm and transaction cost eco-nomics) and strategic management (on dynamic capabilities) while drawing upon organization theory and notions such as organizational routines and bounded rationality. In addition, Augier also provides an interview with David Teece, a true scholar still unsettled with what has been achieved so far - in all three fields: "Maybe I’m wrong; and maybe technology is a special case and maybe technology and organization do not belong at the core of the theory of the firm. My intuition tells me otherwise." (David Teece, quoted in this issue).

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The purpose of this paper is to contribute to the design of e-wallets. e-wallets are intended to replace the existing physical wallet, with its notes, coins, photos, plastic cards, loyalty cards etc. Four different user groups, including teenagers, young adults, mothers and businessmen, has been involved in process of identifying, developing and evaluating functional and design properties of e-wallets. Interviews and formative usability evaluations have provided data for the construction of first a conceptual model in the form of sketches, and later a functional model in the form of low-fidelity mockups. During the design phases, knowledge was gained on what properties the test users would like the mobile wallet to hold and the properties implemented in four prototypes. The identified properties have been clustered as ‘Functionality properties’ and ‘Design properties’, which are theoretical contributions to the ongoing research in mobile wallets.

The continuance of use is an important topic of IS research. However, in the past, many
researchers have focused on adoption rather than IS continuance. Studying continuance
is of equal importance, because if use does not persist, this may limit the revenues of the
provider. This is particularly true for consumer-oriented services, which rely on
advertising, or subscription-based revenue models. In this paper, we investigate the
determinants of location-based services (LBS) continuance as a relevant case study for
the examination of IS continuance generally. A research model is developed and
empirically tested through a survey of a representative sample in Germany. The
proposed model builds on and extends the Limayem et al. model of IS continuance. Our
analysis highlights the importance of habit and emotion in LBS continuance. The results
indicate that habit has a stronger predictive power than continuance intentions for LBS
continuance and that emotions are an important driver for user satisfaction with LBS.

Requirement analysis RE has continued to attract attention among information system researchers. The inquiry into
exploring how RE actually unfolds as an intellectual exercise is the central preoccupation of this paper. Here we
identify requirement analysis as an inferential process, and go on to explaining how the inference unfolds during
requirement analysis, then we argue that the IS literature calls an aspect of the RE process an intellectual activity.
We think the term intellectual activity is much too broad and we want to explore what constitutes this intellectual
activity. We identify the constitution of the intellectual activity as inference and then discuss instances of inference
where problems might occur due to contextual diversity. We conjecture that the problem of inference is such that
instances of the client’s environment is not able to be transmitted in the same sense using the same logical
consistency as the inferring themes might require to understand the concept along with the context. In order to
address this problem we use the nature of inference in “Naiyayika” from the Indian logicians and argue that, this
school allows for the empirical embedding of the context in the formal syllogism.

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This paper argues that we should focus on creating examples of
indigenous HCI. This should be done by becoming more sensitive to regional
and national differences in how work styles and interaction design across time
and use merge, adapt, localize and reduce the ambiguity of the technology. A case
of climate control is reported. The method is interpretive phenomenological
analysis that focuses on idiosyncrasies. The climate control experience of a
Danish expert is compared with the experiences of a similar Israeli expert. The
conclusion says that many similarities exist, but also meaningful differences that
should be the basis for Indigenous HCI design.

We study the rationale for the use of exclusivity to protect transfer of technology in
subcontracting agreements. The legal possibility arises through the EU Notice on
Subcontracting. Empirically, the link between exclusive agreements and technology transfer
among firms in the automotive supply industry in EU candidate countries is surprisingly weak,
although with exclusive-supply or exclusive-buying clauses in subcontracting agreements
upstream transfer of technology is more likely. Exclusive agreements are often reciprocal, and
are typically passed on. Downstream firms are more likely to face and use vertical restraints.
Technology trickles upstream: Multinational final assemblers transfer more technology than
lower-tier suppliers.

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As the scale and scope private military and security companies (PMSCs) are rapidly expanding internationally, the question of their regulation is evermore pressing. Although credible exact figures on the activities of the companies are not available, there is ample indication that the companies play a central role around the world. In Iraq, a Department of Defense survey estimates that there are some 180.000 contractors compared to 160.000 U.S. troops (Singer, 2007: 2). In Nigeria some 1000 registered security companies constitute the second economic sector in the economy after oil (Abrahamsen and Williams, 2006a). Moreover, the scope of PMSC activity is steadily expanding. The trend to privatize and outsource a growing range of activities places PMSCs in charge of an ever growing range of formerly military or policing tasks. The predictable consequence is that PMSCs are increasingly visible and controversial. Incidences such as that in the Nisour square Baghdad where Blackwater contractors were involved in an incident leaving 17 dead civilians on 16th of September 2007 focus attention around the regulatory context of PMSC work. This presentation discusses one aspect of that regulatory context, namely the existing international regulation.

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The paper investigates the determinants behind the choice between a wage earner position versus employee ownership. These determinants can be found both at the individual level: desire for selfgovernance, risk aversion, human capital, wealth, mobility; company level: size, complexity, heterogeneity of labor, capital intensity, human capital; and society level: labor market dynamics, social security, role of unions and specific institutional rules for employee ownership. The choice is determined by the possibility for wage-earners to adjust working conditions by exit versus the possibilities and costs for employee to use voice as owners of their company. It is predicted that employee ownership will be found in organizations which are small, homogenous, simple in structure, and with high emphasis on specific human capital. The opportunities of globalization with complex organizations crossing borders/cultures will be more difficult to implement in employee owned companies. Specific external institutions (tax incentives, company laws, privatization opportunities) and innovative internal institutions may change the balance in favor of employee ownership. The predictions are not tested, but illustrated by examples especially from recent evidence from Eastern Europe.